Red Rock Resources (LON:RRR) has secured new funding with a new standby equity facility, a loan and a small placing.
Yesterday it made new arrangements with Yorkville Advisors for a £10.5 million Standby Equity Distribution Agreement (SEDA).
Concurrently it has cancelled its existing £3 million SEDA, and instead it has agreed a US$3 million loan with Yorkville.
Separately Red Rock placed 2.6 million shares at 15 pence each, to raise around £400,000 in new capital.
“The purpose of these arrangements is to diversify the company's funding options and to enhance its capability to take decisions on further investment,” Red Rock said.
The new SEDA was arranged with one of Yorkville’s managed investment vehicles - the YA Global Master SPV Ltd.
YA Global will subscribe for new Red Rock shares in tranches, with the total investment set at £10.5 million.
The subscriptions will take place over a 36 month period.
Red Rock has previously drawn down £500,000 on the earlier SEDA.
YA Global has agreed to loan US$3 million to Red Rock.
The loan carries a 12 percent annual coupon and it will be repaid in 5 instalments which will last until 3 May 2011.